STI in the red - negotiating scrubber financing

Nov 08 2019


For the three months ended 30th September, 2019, Scorpio Tankers (STI) suffered an adjusted net loss of $44.8 mill and a net loss of $45.3 mill.

This compares with an adjusted net loss of $64.9 mill and a net loss of $71.7 mill in 3Q18.

For the first nine months of this year, STI's adjusted net loss was $59.8 mill and the net loss was $60.5 mill, compared with $141.3 mill and a net loss of $172.4 mill.

On 26th September, 2019, the company acquired subsidiaries of Trafigura Maritime Logistics, which have leasehold interests in 19 product tankers under bareboat charter agreements with an international financial institution, for aggregate consideration of $803 mill. 

Of the 19 vessels, 15 (consisting of 11 MRs and four LR2s) were delivered during 2019 and four MRs are currently under construction. 

STI gave a breakdown of average daily rates earned by the different tanker classes in the fleet thus far in 4Q19.

For the LR2s in the pool, an average of about $26,000 per day for 47% of the days was recorded ($15,960 per day for 3Q19); LR1s in the pool, an average of around $17,000 per day for 46% of the days ($13,126 per day in 3Q19); MRs in the pool, an average of about $17,000 per day for 45% of the days (£13,640 per day in 3Q19); Ice Class 1A Handymaxes in the pool, an average of around $15,000 per day for 42% of the days (£9,974 per day in 3Q19).

As of this week, STI said that it had received commitments for nine different facilities to partially finance the purchase and installation of scrubbers on certain vessels, which are are expected to increase the company’s liquidity by around $120.2 mill. 

In addition, the company is in discussions with a different group of financial institutions to finance the purchase of scrubbers which, if consummated, is expected to increase STI’s liquidity by an additional $57.5 mill.

Subject to reaching agreement on satisfactory terms relating to the additional scrubber financing, all of these agreements are expected to be signed in the next few months, and the drawdowns are expected to occur as the scrubbers are installed throughout the remainder of 2019 and 2020.

As of 6th November, 2019, the company had $200.8 mill in unrestricted cash and cash equivalents.

 



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Jul-Aug 19

Greece, alarm fatigue, Fujairah explosions, scrubbers, tank cleaning